Owner of Kansas Metal Company Pleads Guilty to Employment Tax Scheme

A Kansas man pleaded guilty today to willfully failing to pay federal employment taxes.

According to court documents and statements made in court, Douglas Furnell of Leawood, was the owner and operator of Western Metal Company, a Louisburg-based manufacturer of custom metal products. As such, he was responsible for paying over to the IRS the federal income and Social Security and Medicare taxes withheld from his employees’ wages. From the first quarter of 2015 through the second quarter of 2020, however, Furnell did not timely pay the withholdings to the IRS nor file the requisite quarterly employment tax returns. In total, Furnell caused a tax loss to the IRS of approximately $333,983.

Furnell is scheduled to be sentenced on Dec. 14, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Kate E. Brubacher for the District of Kansas made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorney Erika V. Suhr of the Tax Division and Assistant U.S. Attorney D. Christopher Oakley of the District of Kansas are prosecuting the case.